News // Russia

Russia scales down gas transit through Ukraine using bypass pipelines

03 August 2017 , 18:00Neftegaz.RU604

More Russian gas is being pumped through OPAL, the European pipeline that connects Gazprom’s Nord Stream to Germany and the Czech Republic. This comes as Russia seeks to cut gas transit through Ukraine, RT reported on August 3, 2017.

On Tuesday Gazprom won an auction to use OPAL’s free capacity.

The next day, the pipeline saw an increase in gas transit from 56 million cubic meters (mcm) to 71.5 mcm per day.

Gas transit from Ukraine dropped from 161 mcm on Tuesday to 147.6 mcm on Wednesday before stabilizing at 155.1 mcm by Wednesday evening.

Kiev can lose 20 % of its gas transit and about $400 million a year, Fitch Ratings oil and gas analyst Dmitry Marinchenko told the media.

In October 2016, the EC approved the expansion of Gazprom's access to OPAL.

In December, the Polish government and the company PGNiG appealed the EC decision in court, saying the inclusion of Gazprom in OPAL creates a threat of a disruption or termination of gas supplies to the EU.

As a result, the EC decision was rescinded.

However, last week, the EU Court lifted restrictions on Gazprom's access to OPAL's facilities.

The Russia-Ukraine gas transit contract expires in 2019 and Moscow has repeatedly said Ukraine will lose its status as a key transit hub.